TaxTMI 
TaxTMI 
2025 (7) TMI 1951
X X X X Extracts X X X X
X X X X Extracts X X X X
....s and in the prevailing circumstances of the case, respected PCIT-Pune-1 erred passing the impugned Revision Order under section 263 without appreciating the fact that interest on the deposits made by a co-operative society with the co-operative Bank is eligible for deduction under section 80P of the Act. Hence, the impugned order under section 263 may please be squashed. 2. On the facts and in the prevailing circumstances of the case, respected PCIT-Pune-1 erred passing the impugned Revision Order under section 263 without appreciating the fact that Chapter VI-A Deductions are allowed if Profit enhanced due to disallowances. Hence, the impugned order under section 263 may please be squashed. 3. On the facts and in the pre....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uction u/s 80P(2)(a)(i) of the IT Act. Therefore, Ld. PCIT was of the view that the above interest income of Rs. 69,95,237/-is required to be taxed under the head "Income from other sources" i.e. u/s 56 of the IT Act. 4. It was also found by Ld. PCIT that the assessee has debited an amount of Rs. 26,30,000/-towards outstanding interest NPA provision & according to Ld. PCIT neither the assessee has provided any explanation in this regard nor the Faceless Assessing Officer has confronted upon the assessee on this issue. Therefore, according to Ld. PCIT, Pune-1 the amount of Rs. 26,30,000/-requires to be disallowed and brought to tax as per section 37(1) of the IT Act. 5. With regard to above points, the assessee furnished....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ri Patsanstha Maryadit, ITA No. 1041/PUN/2025 order dated 05-06-2025 8. Ld. AR submitted that in all the above decisions it has been categorically held that the cooperative banks are also cooperative societies and therefore the assessee credit cooperative society who earned interest income from their investments made in the cooperative banks does qualifies for deduction u/s 80P(2)(a)(i)/ 80P(2)(d) of the IT Act. 9. With regard to NPA provision of Rs. 26,30,000/-which was made towards outstanding interest, Ld. AR submitted that the NPA provision was made as per the by-laws of the society and it was compulsory as per the Cooperative Societies Act. Ld. AR further explained that if the NPA provision of Rs. 26,30,000/-is dis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....earned from Cooperative banks is not allowable u/s 80P(2)(a)(i) of the IT Act. 2. NPA provision is not allowable u/s 37(1) of the IT Act. 13. With regard to Interest earned from Cooperative banks is not allowable u/s 80P(2)(a)(i) of the IT Act, we find that under identical facts a coordinate bench of this Tribunal in the case of Swami Vivekanand Nagari Sahakari Patpedhi Maryadit in ITA No. 1190/PUN/2025 order dated 18.06.2025 has allowed the appeal of the assessee by observing as under :- "11. The Hon'ble Supreme Court in the case of Pr.CIT Vs. Annasaheb Patil Mathadi Kamgar Sahakari Pathpedi Ltd., 454 ITR 117 (SC) has held as under : Quote. "5. There are concurrent findings recorded by CITA, ITAT and the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....14 dated 20.05.2016. The facts recorded in the ITAT order in ITA No. 2515/MUM/2014 are that Annasaheb Patil Mathadi Kamgar Sahakari Pathpedi Ltd., is a Co-operative Credit Society registered under the Maharashtra Co-operative Society Act, had claimed deduction under section 80P(2)(d) of the Income Tax Act, 1961 as well as Rs. 5,85,57,676/-claimed under section 80P(2)(a)(i) of the Act. The Assessing Officer disallowed the claim of deduction u/s. 80P(2) in the case of Annasaheb Patil Mathadi Kamgar Sahakari Pathpedi Ltd. The Revenue in the appeal filed before ITAT in ITA No. 2515/MUM/2014 has raised following questions: "(i) On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in dele....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ourt cited supra has quashed the proceedings u/s 263 of the IT Act and allowed the appeal in favour of the assessee. Therefore, respectfully following the above decision of the Tribunal (supra), we quash the proceedings u/s 263 of the IT Act and allow the ground of appeal raised in this regard. 15. With regard to NPA provision is not allowable u/s 37(1) of the IT Act, we find that under similar facts a coordinate bench of this Tribunal in the case of Shri Dhokeshwar Gramin Bigarsheti Sahakari Patsanstha Maryadit (supra) has allowed the appeal of the assessee and quashed the proceedings u/s 263 of the IT Act by observing as under :- "4. We have heard LD Counsels from both the sides & perused the material available on record. We f....